The market for home loans in India grew from Rs. 4.6 trillion to Rs. 9.7 trillion between fiscal years 2012-13 and 2017-18. The main reason behind this growth is the easy availability of such credits from various financial institutions.
Applicants must submit a set of documents required to avail of a home loan and an application form when they apply for such advances. Lenders conduct a verification of the concerned documents once they receive them. They also perform a physical verification process. Applications are approved only after completion of the verification process.
Applicants need to ensure that everything is correct in the required documents, which may lead to the rejection of their home loan application. The list of documents required for a home loan is provided below.
Identity proof
Applicants must provide identity proof with any KYC documents, including PAN card, Voter ID card, Aadhaar card, driver's license, passport, National Rural Employment Guarantee Act job card, etc.Address proof
Borrowers can submit documents, including Voter ID cards, Aadhaar cards, driver's licenses, passports, utility bills, etc., as their address proof. They should ensure no errors in the document as lenders conduct physical verification of the address.Property documents
Applicants must provide the following property documents required for home loan approval and get help from the Moreira Team homepage.Original sale deed.
Detailed cost estimation behind the construction of the property.- Proper location sketch of the property.
- Possession certificate of the property.
- Building and land tax payment receipts.
- Receipt of any advance paid towards the purchase of an apartment.
- Original copy of the No Objection Certificate (NOC) from the builder or housing society.
Passport-sized photographs
Financial institutions require a few copies of recent passport-sized photographs of borrowers for the loan application process.List of specific documents required for home loan approval of salaried applicants
The list of particular home loan documents required for salaried individuals is below.
Income proof
Applicants must submit their latest salary slips or Form 16 as proof of income. Financial institutions determine the repayment capability of an individual with this document. Applicants with regular income sources and the requisite proof will have a smooth loan disbursement process.List of specific documents required for self-employed applicants
The list of particular home loan documents required for self-employed individuals is below.
Proof of business vintage
Lenders require applicants to submit the documents supporting the vintage of their business. Borrowers must ensure they have a business existence of 5 years and relevant documents associated with it.Also, applicants may need to submit additional documents to prove the existence of their business. The documents include partnership deeds, SSI registration certificates, and GST certificates.
Bank statements
Applicants need to submit updated bank account statements 6 months before applying for a home loan online application procedure. Financial institutions determine regularity in the income of an individual with the help of this information.Profit and loss statements
Self-employed applicants must submit profit and loss statements of their business for the previous 2 years. With the help of this information, financial institutions determine an applicant's repayment capability.Apart from all these documents, applicants may be required to submit additional documents depending on the lender. Thus, the whole process can take a lot of time and create a hassle for the applicants. For this reason, some financial institutions have curbed down the home loan eligibility criteria and reduced the number of documents required.
Some NBFCs also offer already-approved offers on such advances to make the process faster and smoother. Pre-approved offers are valid on several financial products and services, including secured home loans, unsecured business loans, and personal loans.
Along with the list of documents, borrowers should also check the eligibility criteria for such credits to ensure a smooth application procedure. They can use an online home loan eligibility calculator to know their entitled amount.
